Opportunity Emerges for Large-Scale Redevelopment at Downtown san Diego’s 4th and B Street Site
Aโ significant opportunity for large-scale redevelopment is taking shape โฃin downtown Sanโ Diego around the intersectionโข of 4th and B Streets, โขspurred by the recent listing of the property at 345โ B St.,adjacent to the historically significantโฃ but decaying California Theater.The California Theatre itself is also for sale and facesโ a deadline; it must be โsold byโฃ the end of next โฃyear or be demolished shortly thereafter, as mandated by a legal settlement between its bankruptโ owner andโ the city of San Diego.
The potential for โขa unified redevelopment of the entire block is gaining traction,with real estate analysts suggesting a single buyer could unlock considerable benefits. Currently,the block is fragmented with multipleโ owners,including Hall Fish Investments and 1131 Third Ave LLC,who jointly own the โAce surface parkingโ lot that occupies half the block.The California Theatre and 345 Bโ St. are being marketedโฃ separately by CBRE.
Prior to the listing of 345 B St., developersโข had been pursuing individual projects on portions of the block. Iida, such as, had been working with the city’s Development Services Department since May 2023 โขto secure a building permit for a 400-footโข tower encompassing 301 hotel rooms, 59,800 square feet of office space, and 10,400 square feet of retail. The permit review โwas nearing completion, andโ city officials confirmed a new owner could continue the process, or submit a new request.
However, the listingโ of 345 B St. has fueled hope that a new owner will pursue a more comprehensive vision for the area. Real estate analyst Gary โฃLondon of London โฃMoeder Advisors described the area as a “black hole”โ of downtown and believesโฃ a full-block development is now feasible. He advocates for the current owners to collaborate on a unified sales strategy to attract a single buyer capable of โคdelivering a meaningfully scaled project.
While initial interest in the California Theatre property has not focused on demolition,prospectiveโ buyers have โreportedly preferred to wait until the legal settlement necessitates it. London suggests the listing of 345 B St. changes this dynamic, presenting an opportunity to address the struggles of C and B Streets, particularly in light โคof the challenges facing the downtown office market. A large-scaleโ project, possibly combined with the Civic Center redevelopment, could serve as a โwestern anchor for revitalizing both streets.
CBRE will formally solicit offers for the California Theatre property next โขweek, signaling a crucialโค step in determining the future of this keyโข downtown block.
